8/4/10 Getting some love from the Yen – +102 points

I’ve been away working and on holiday for the last two weeks so I always ease myself back into trading very slowly. Yesterday was my first day back but it was a strange old messy day.

Today I was back into my routine and starting with my relative strength filter it was giving me some good opportunities to buy yen strength and sell euro and swissy weakness.  I placed 4 trades and all 4 triggered.

EURUSD – I was triggered short, price hit my break even point before retracing back and taking me out for 0 points. A scratch trade.  Ok fair enough, next trade.

GBPJPY

1.  My short order was triggered around 141.74.  Prices dropped strongly.

2 Price hits my break even point and my stop loss is now moved to my entry point.

3. After a strong retrace price drops again and hits my target at 141.29 for +45 points. Nice. Next trade.

EURJPY

1. My short order at 124.14 is triggered and price drops strongly, it hits my break even point minus the spread.

2. After a strong retrace where my position goes negative it then drops strongly and hits my break even point.

3. Price continues down.  My target is 123.69 however it’s getting near to 9am and I have visitors to my office.  I close my position at 123.79 for a total of +35 points profit. Nice.  Next trade.

CHFJPY

1.  Once again my short trade is triggered on Yen strength across the board. It heads down a few pips before retracing strongly against me into the moving average.

2. Price bounces off the moving average (lucky for me) and continues down and hits my Break even point. Now in a risk free trade

3.  As like my EURJPY trade price continues down towards my final target of 86.32.  As with the EURJPY trade I close the position as I have visitors my trading room.  Position closed for +22 points. (It subsequently went on to hit my final target.)

So overall there were 4 trades: 1 Breakeven on EURUSD and 3 Income trades on the YEN crosses for a total of 102 points.

With ever glorious hindsight I could have let the EURJPY and CHFJPY trades just run out.  The reason they were closed is valid, I had visitors in my trading room and I don’t like to be distracted.  Furthermore the way I employ my tactic means there are no trailing stops on this set-up. I wanted to close down the positions and focus on my new tasks. I find that I can coach well or I can trade well.  I can seldom do both well at the same time. (Our female readers will just put that down to the male’s inability to multi-task! I personally like to describe it as being ‘especially focussed!’)

If you want to learn more about how we trade these set-ups then drop me a line about our next Advanced FX Trading day on Friday 7th May in Central London.